Tips for finding a reliable tax preparer

Dozens of customers say they wish they'd never gone to Mo' Money Taxes to have their returns done. Many are waiting for refunds, weeks after they were promised by Mo' Money, which is being investigated by the Norfolk Police Department and the Internal Revenue Service. Here are tips – from the IRS, the Virginia Board of Accountancy and the American Institute of CPAs – for finding a reliable tax preparer.

"Talk to your friends, your family and your business colleagues, and get referrals," said Melissa Labant, director of tax advocacy for the American Institute. "That, to me, is Step No. 1."

"Informally interview" the preparer during a phone call, Labant said, and "see whether or not you're comfortable."

If you're a small-business owner, ask what percentage of the preparer's clients are small businesses.

All paid preparers must have a Preparer Tax Identification Number. Ask for their numbers. "If they give you a look like they don't know what you're talking about, that's a red flag," Labant said.

Check the Better Business Bureau's ratings and complaint record on the preparer.

To see whether a certified public accountant is licensed with the Virginia Board of Accountancy, go to https://secure1.boa.virginia.gov/Verification. To check whether a licensed CPA has been disciplined, call the board at 804-367-8505 or email boa@boa.virginia.gov.

Don't use a preparer who promises to e-file a return using your last pay stub before you receive your W-2 form; that would violate IRS rules. Also avoid preparers who ask you to sign a blank return.

Ask first about fees and the process for receiving refunds. Avoid preparers who charge fees based on a percentage of your refund or who promise bigger refunds than their competitors. Make sure your refund will be sent to you or deposited in an account in your name.

If a preparer doesn't ask for a copy of your previous return or completes your return without providing you a copy, "that would be a concern of mine," Labant said.

Make sure you can contact the preparer even after April, in case questions come up.